Money Management
What is the term for making smart choices about how you earn, spend, save, and plan your money?
Money management
What is a financial institution where people can deposit money, save money, and use accounts?
Bank
What type of bank account is usually used for everyday spending and paying bills?
Checking account
What is investing?
Putting money into something with the goal of making more money over time
What is a stock?
A small piece of ownership in a company
What type of expense stays mostly the same every month, like rent or a phone bill?
Fixed expense
What is a credit union?
A member-owned financial institution that offers banking services
What type of account is usually used to store money and earn interest over time?
Savings account
True or false: Investing usually has more risk than saving.
True
What is a ticker symbol?
A short code used to identify a company’s stock, like AAPL for Apple
What type of expense can change from month to month, like food, gas, or entertainment?
Variable expense
What is one thing you may need to open a bank account?
ID, Social Security number, address, or minimum deposit
What type of account often earns more interest than a regular savings account but may require a higher balance?
Money market account
What is diversification?
Spreading your money across different investments to lower risk
What is a shareholder?
A person who owns shares of a company’s stock
What is a budget variance?
The difference between what you planned to spend and what you actually spent
What does APY usually tell you about a savings account?
How much interest your money can earn in one year
What does CD stand for in banking?
Certificate of Deposit
Why can starting to invest young be helpful?
Your money has more time to grow, especially through compound interest
In a stock research project, what does a “Buy, Hold, or Sell/Avoid” rating mean?
It is your final opinion on whether the stock seems like a good investment, something to wait on, or something to avoid for now
What is net worth?
What you own minus what you owe, or assets minus debts
Why should you compare banks or credit unions before opening an account?
To compare fees, interest rates, minimum balances, benefits, and drawbacks
What is one disadvantage of a Certificate of Deposit?
Your money is locked in for a set time, and you may pay a penalty if you withdraw early
Why is investing usually better for long-term wealth than only saving?
Investing can earn higher returns over time, while savings accounts usually grow slowly
What does a stock’s 52-week range show?
The lowest and highest price the stock reached over the past year